I covered today because I think it is a trap. Linn needs the move the share price to at least $30 to get the deal done in a timely manner. The noise from Bry is the deal can be amended or changed or ended. This is a $4B deal. A clean S4, positive earnings and the Bry deal moving forward is a disaster for a short position. If Line can't hold $26.50, I would reenter my short position.
Not sure why this news surprises anyone honestly. We knew after the 11th that this was not going to be closed on the 31st because of something pointed out by rlp about BRY requiring 20 days notification to their shareholders of a vote. Closed by the 31st does not mean initiated by. I'm seeing a lot of lawyer speak in these releases which tells me they are being particular about what they say, and how they say it. It must be read and interpreted exactly as it is written. Assuming anything is not comprehending the way lawyers communicate. The big question is why. The way I am reading this, they are being very careful in their wording to avoid technically calling the deal dead, but relaying what should be obvious information. Likely because legally they may have to.
What are the chances the 5th incarnation of the S-4 be approved by next Monday? It was just submitted a few days ago. Look, even BRY mgmt. says the deal won't get done by Oct 31... I really don't know how you would pull a rabbit out of your hat.
The 5th incarnation of the S-4 has the same swap ratio...nothing had changed... and yet the spread is now at an unbelievable $10/share.
Earnings report is on Monday AFTER market close....there's still plenty of room to run down, especially if bad news is on a Friday...folks have a whole weekend to digest and lose sleep over the news. Guess what they would do first thing Monday?? Buy??? Duh?!?
By the time you want to reinitiate your short positions, the hedge funds with their HFT had already beat you to it.